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Newsletter January 2016

31.03.2016

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New Year’s resolutions for landlords

With the New Year approaching, our minds are buzzing with resolutions to make 2016 a great year. As a landlord, there are a few goals you can set yourself to boost the chances of having a seamless and profitable year ahead.

Take care of outstanding maintenance before the financial year’s end

Plenty of properties have a few small issues that need tweaking, and New Year’s fresh start is the perfect time to commit to getting them fixed. If an air conditioning system has broken down, get to it before the heat really hits and smooth out any other maintenance qualms before the end of the financial year.

Think about growing your portfolio

Have a chat with your property manager or trusted estate agent about your portfolio goals for the coming year. Whether you’re looking to expand your portfolio or sell an asset and drive the capital into a new project, discussing your options with a market expert could prove profitable.

Get a depreciation report to maximise your tax return for 2015-2016

You might already be well-versed in property depreciation, but if you’re not, it’s time to get clued up. Speak to a quantity surveyor about preparing a depreciation report on your properties – you’ll thank yourself at tax time. Both plant and equipment and building allowance depreciations can equal substantial savings on your annual tax bill, so don’t let another year pass without a schedule in place.

Consider whether your loan still suits you

Take some time to review your loans and your current lifestyle. Speak with your broker about how the economy could affect your plans for 2016, and consider refinancing if you’ve outgrown your loan. If you’re looking to make improvements to a property, refinancing can allow you to access equity if your property is worth more than when you bought it – even simply switching your loan to another lender could offer you a more favourable rate. not, it’s time to get clued up. Speak to a quantity surveyor about preparing a depreciation report on your properties – you’ll thank yourself at tax time. Both plant and equipment and building allowance depreciations can equal substantial savings on your annual tax bill, so don’t let another year pass without a schedule in place.

Consider whether your loan still suits you

Take some time to review your loans and your current lifestyle. Speak with your broker about how the economy could affect your plans for 2016, and consider refinancing if you’ve outgrown your loan. If you’re looking to make improvements to a property, refinancing can allow you to access equity if your property is worth more than when you bought it – even simply switching your loan to another lender could offer you a more favourable rate.

Make sure you’re fully insured
Give yourself the gift of reassurance this Christmas by making sure you and your properties are fully insured. There are several types of landlord insurance available, and your property manager can refer you to a provider that suits your situation best. Get on top of your insurance policies and look forward to a worry-free 2016.

Behind the scenes: what happens at a routine inspection

So, your property manager is overseeing your portfolio – answering your tenants’ queries, collecting rent and of course, carrying out those all-important routine inspections to make sure everything is ship shape. But what exactly goes on behind the clipboard? When your property manager visits your properties for inspection, they are of course checking your tenants are looking after the home – but that’s not all. Different states have different legislation, and your property manager will be well-versed on what compliance looks like for landlords and tenants more locally. Ensuring the property is safe for your tenants to reside in is an important aspect of inspections – their thorough checking can save you from a lot of heartache if safety or health issues have been left unreported by tenants. Routine inspections can also enhance help minimize the likelihood of necessary maintenance in your property. Your property manager will be on the lookout for preventative measures you can take to avoid cosmetic and structural problems developing in the property – as well as identifying any areas of improvement that could allow you to command a higher yield in future. Take time to go through your routine inspection report with your property manager. While everything may be running smoothly and complying with the necessary legal requirements, there are often improvements identified that are worth undertaking for the benefit of your investment and your tenants.

Treat your tenants

Be Santa landlord this Christmas and treat your tenants with a gesture of goodwill! Slipping a card or a box of lollies to your tenants at festive season can usher in a forthcoming year of harmony between all parties. It’s a great opportunity to erase any conflict or tension that 2015 may have brought, and maybe even keep your property leased and rental income ticking over for the longer term – particularly if you’re rewarding good tenants for looking after the property. Prior to giving gifts to your tenants, consult with your property manager as to the appropriateness of the gesture. Reward tenants whom you feel have contributed to your investment’s health over the past year, and work to discourage difficult or hard-to-work-with tenants from thinking you’re a pushover.